Research Discussion Paper – RDP 2014-05
The Changing Way We Pay: Trends in Consumer Payments
Abstract

The Reserve Bank of Australia's third Survey of Consumers' Use of Payment
Methods was conducted in November 2013. The survey used a diary and end-of-survey
questionnaire to collect data on the use of cash, cards and a range of other
payment methods, both at the point of sale and via remote channels (online,
mail and telephone).

The 2013 data show that cash and cheque use has continued to fall. The use of cards
has risen significantly, and there has also been an increase in the use of
PayPal. The growth in the use of cards and the reduction in cash use are evident
across households in all age and household income groups. The strong growth
in remote payments is one contributor to the observed change in the use of
cash and cards. However, the main contribution is from the increased use of
cards at the point of sale, which is likely to reflect both growth in the availability
of card terminals at merchants and changing consumer preferences as authentication
methods have evolved. In particular, we find some indication that the adoption
of contactless technology, which lowers the tender time of card payments at
the point of sale, may have increased card use.

The paper presents detailed information about the use of contactless card and smartphone
payments by demographic group and payment type. It also provides an update
on the payment of surcharges on card payments, including information about
the value of card surcharges that were paid by consumers, and the payment of
ATM fees.